What Am I

Another boring article on Coal Economics! :) While every one is clamoring for coal from Indonesia, Australia and South Africa, developments in the farther west might have shifted the overall paradigm of coal scenario. USA with its increasing Shale gas resources and the emphasis on cleaner coal has seen a decline in coal based electricity generation thereby leading to increased inventory of coal. (So far Cliched!!) With decreased coal consumption, it was inevitable that US starts exporting Coal from the power hungry countries like China and India. Till date the high prices and domestic consumption in USA were impediments. But they no longer are. Hence, as predicted Coal has slowly started moving out of USA.  To begin with its only a trickle, but the interesting thing is it has actually started moving out.  The below figure provides a snapshot of the coal moving out to the three of the largest consumers: As expected, with its proximity to USA and the hunger it has of Co

As has been the case always, India is only doing a catching up in terms of Shale oil & gas exploration. With USA already reeling under the excess gas production ever in its history, and China going ahead with its second round of bidding for Shale gas exploration. India finally woke up to the possibility of exploration options and hence has prepared a draft policy, which is available for comments on the Ministry of OIl's website. With the recent power crisis, brining the energy crisis into limelight the shale gas development becomes all the more significant and lot of eyes will remain glued to the way things shape up. The whole process in a very nascent stages, since at this time even the likes of "Yours sincerely" is also aspiring to bid for the shale gas, India has to be really cautious about the way forward. One of the most important aspects associated with Shale gas is the (the Nuclear related issue as well) is the long term liability of the deve